Ophir Energy: Fortuna FLNG “technically ready” for FID

London-based Ophir Energy on Thursday said its Fortuna FLNG project in Equatorial Guinea is moving forward and the project is “technically ready” for a final investment decision.

“The upstream portion of the value chain is technically ready to FID and the downstream, offtake portion is ready for a final Group decision between the competing offtake offers,” Ophir said in its half-year results report.

The oil and natural gas producer noted in the report that two consortia were bidding for the upstream EPCIC (Engineer, Procure, Construct, Install & Commission) contract for the Fortuna FLNG.

Ophir reduced estimated upstream costs from about $1 billion at the end of 2014 to approx. $450 million today. On a point forward basis, these represent an upstream development cost of about $1.70/boe.

As per the downstream part of the FLNG project, the company said it has shortlisted four “high quality, high credit-rated gas off-takers, all of whom are significant players in the LNG market.”

“Regarding the midstream portion of the value chain, Ophir and Golar LNG continue to explore ways to work together to monetise the discovered resource in the Fortuna field. Discussions are progressing well and both parties are working towards an FID decision being made before the end of 2016.”

To remind, Ophir announced in April it had terminated discussions with Schlumberger regarding the participation in the Fortuna FLNG project under which Schlumberger would  have received a 40% economic interest in the FLNG project.

The company is currently searching for partners to help fund the Fortuna project.

“The value chain, and our understanding of costs along this value chain, are sufficiently mature that we estimate that Fortuna is the lowest cost greenfield LNG project in the market today. As such the Fortuna project continues to offer compelling returns despite the low commodity price environment,” Ophir said.

LNG World News Staff